Quantchabot has detected a promising Bull Call Spread trade opportunity for ACADEMY SPORTS AND OUTDOORS INC. (ASO) for the 2-Dec-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ASO was recently trading at $51.44 and has an implied volatility of 45.49% for this period. Based on an analysis of the options available for ASO expiring on 2-Dec-2022, there is a 34.40% likelihood that the underlying will close within the analyzed range of $51.50-$55.45 at expiration. In this scenario, the average linear return for the trade would be 10.19%.
52 week high: ACADEMY SPORTS AND OUTDOORS INC. recently reached a new 52-week high at $51.95. ASO had traded in the range $25.10-$51.51 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ASO maintains its current direction and does not revert back to pricing on the bearish side of $51.44 on 2-Dec-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ACADEMY SPORTS AND OUTDOORS INC. closes at or above $51.49 on 2-Dec-2022. Based on our risk-neutral analysis, there is a 50.05% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.